Understanding Value Stocks
A value stock traditionally has a lower price when compared to stock prices of companies in the same industry. This indicates that the company may be undervalued, as investors are not expressing as much interest in such companies. The most commonly used way to check for value is with the price-to-earnings multiple, or P/E. A low P/E multiple is a good indication that the stock is undervalued.
Below is a list of notable value stocks in the consumer cyclical sector:
- Taylor Morrison Home TMHC - P/E: 9.17
- M.D.C. Holdings MDC - P/E: 6.94
- Beazer Homes USA BZH - P/E: 5.54
- Aarons AAN - P/E: 7.85
- MarineMax HZO - P/E: 7.97
Taylor Morrison Home's earnings per share for Q3 sits at 1.34, whereas in Q2, they were at 0.95. Taylor Morrison Home does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.
M.D.C. Holdings's earnings per share for Q3 sits at 2.12, whereas in Q2, they were at 2.11. The company's most recent dividend yield sits at 3.99%, which has increased by 0.82% from 3.17% last quarter.
Beazer Homes USA has reported Q4 earnings per share at 1.57, which has increased by 28.69% compared to Q3, which was 1.22. Beazer Homes USA does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.
Aarons saw a decrease in earnings per share from 1.05 in Q2 to 0.83 now. Most recently, the company reported a dividend yield of 1.56%, which has increased by 0.19% from last quarter's yield of 1.37%.
Most recently, MarineMax reported earnings per share at 1.45, whereas in Q3 earnings per share sat at 2.59. MarineMax does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.
These 5 value stocks were selected by Benzinga Insights based on quantified analysis. While this methodical judgment process is not meant to make final decisions, our technology can give investors additional perception into the sector.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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